Audi China joint venture approved for $3.3 billion electric vehicle factory

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Audi, the luxury capital of the Volkswagen Group, has officially partnered with Chinese group FAW to begin construction of a $3.3 billion electric vehicle factory that will be jointly operated. According to various reports, the Chinese authorities approved the project on February 11, 2022.

Audi already has an established partnership with FAW Group to jointly manufacture gasoline cars in Changchun. However, he signed an agreement with the group in October 2020 with the intention of jointly producing luxury electric vehicles in the future.

A Volkswagen Group spokesperson officially confirmed the recent approval and provided the following comments. However, FAW Group has yet to provide a statement on factory approval.

“The Audi FAW NEV project is an important cornerstone of Audi’s electrification strategy in China.”

“We are therefore continuing relevant work in this project. Construction of the plant is expected to start in the second quarter of 2022.”

Audi and FAW Group plan to begin construction of the plant in April 2022. It will be located in The city of Changchun, which is the capital of Jilin province. Together, the two companies have announced plans to invest a total of approximately $3.3 billion in the upcoming joint venture plant.

According to Automotive Newsinitial production at the upcoming plant won’t start until December 2024. The plant will be able to produce some 150,000 electric vehicles a year, with plans to make three different models, including the Audi e-tron crossover.

The joint venture with FAW Group is not Audi’s only electric vehicle project for China. In fact, Audi claims that by 2025, a third of its car sales in China will be electrified models. Besides FAW Group, the German luxury brand is also working with Shanghai-based SAIC Motor.

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